Ainsworth Game Technology (AGI) H1 2026 earnings summary

Executive summary

• Revenue for the half ended June 30, 2026, declined 23% year-over-year to $116.5 million, mainly due to lower land-based sales in North America and Latin America & Europe, partially offset by growth in Asia Pacific driven by new product releases.

• Underlying profit before tax (excluding currency and one-off items) was $4.7 million, down from $13.9 million in the prior year, and statutory profit after tax dropped 78% to $1.1 million, impacted by a $2.3 million patent provision.

• Gross margin improved to 62% from 56%, supported by tariff refunds and higher average selling prices, especially in Asia Pacific and North America.

• Positive operating cash flow of $8.9 million was achieved, and net debt reduced to $8.5 million from $11.8 million at December 2025.

• Dividends remain suspended to preserve liquidity and support ongoing product development.

Financial highlights

• Underlying EBITDA was $17.1 million (down from $26.9 million), with margin compressing to 14.7% from 17.7%.

• Reported profit after tax was $1.1 million, compared to $4.9 million in the prior year.

• Recurring revenue contributed $43.3 million (37% of total), including HHR connection fees.

• R&D expenses increased to 22% of revenue, up from 16% in the prior year.

• Operating cash flow improved to $8.9 million from an outflow in the prior year, driven by better working capital management.

Outlook and guidance

• Focus remains on rebuilding operator trust, expanding the Raptor product lineup, and leveraging proven themes across markets, with continued investment in AI-driven development and product innovation.

• Revenue recovery in Latin America and Europe is a priority, with disciplined cost management supporting margins.

• Product roadmap emphasizes consistent release cadence, especially in North America, leveraging the Dragon Legacy series.

• Maintain R&D investment, expand AI-driven development capacity, and prioritize debt reduction and liquidity over dividends.